Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC), a passively managed exchange traded fund launched on 06/28/2017.

The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $549.47 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.

Why Small Cap Blend

Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.37%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector--about 19.90% of the portfolio. Industrials and Healthcare round out the top three.

Looking at individual holdings, Sprouts Farmers Market Inc (SFM) accounts for about 0.62% of total assets, followed by Mueller Industries Inc (MLI) and Corcept Therapeutics Inc (CORT).

The top 10 holdings account for about 3.98% of total assets under management.

Performance and Risk

GSSC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Small Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Small Cap Equity Index is designed to deliver exposure to equity securities of small capitalization U.S. issuers.

The ETF has gained about 3.73% so far this year and was up about 16.14% in the last one year (as of 01/31/2025). In the past 52-week period, it has traded between $60.56 and $76.22.

The ETF has a beta of 0.99 and standard deviation of 21.48% for the trailing three-year period. With about 1311 holdings, it effectively diversifies company-specific risk.

Alternatives

Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GSSC is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $74.41 billion in assets, iShares Core S&P Small-Cap ETF has $89.87 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC): ETF Research Reports

Mueller Industries, Inc. (MLI) : Free Stock Analysis Report

Corcept Therapeutics Incorporated (CORT) : Free Stock Analysis Report

iShares Russell 2000 ETF (IWM): ETF Research Reports

Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report

iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research